Market Price
The market price is the price at which a stock can currently be bought or sold for. The price can fluctuate as a result of many different things including a company’s reported earnings and when significant changes More...
Margin Requirement
When a trader or investor wants to purchase more options than they have liquid cash for, they can purchase on margin, or credit, typically through a brokerage firm. This type of purchase uses the purchased shares More...
Maintenance call
When an investor chooses to purchase on margin, or credit, they must deposit an amount of money into a margin account. The amount of money depends on the amount of margin the investor wants to use and is regulated More...
LEAPS
LEAPS stands for Long Term Equity Anticipation Security and are options that have longer than usual expiration. Most options have expiry cycles of three, six, or nine months while LEAPS can have an expiration of More...
Iron Condor
An Iron Condor is an advanced trading strategy that is created by selling a lower strike out-of-the-money put, buying an even lower strike out-of-the-money put, selling a higher strike out-of-the-money call and More...
Iron Butterfly
An iron butterfly is an advanced trading strategy that is created by buying a lower strike out-of-the-money put, selling a middle strike at-the-money put, selling a middle strike at-the-money call, and buying a More...
Index fund or Index ETF
An index fund is a passively managed type of mutual fund or ETF that is put together so that its performance mirrors or tracks the performance of a specific market index, such as the S&P 500 or other indexes More...
At-the-money
This occurs when the strike price matches the price of the underlying security. The call and put options both will be at-the-money. Such a situation means that although the at-the-money option has no intrinsic value, More...
Undervalued
The opposite of overvalued, an undervalued stock price is not justified by its anticipated earnings, does not coincide with price/earnings (P/E) ratio and is below the stocks’ true value. By utilizing a wide variety More...
Overvalued
A stock that is overvalued means its current stock price is not justified by its anticipated earnings, it does not coincide with its price/earnings (P/E) ratio, and is expected to drop in price. Many factors such More...